Yahoo Should Dig into Bank Account

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Yahoo Should Dig Into Bank Account...

By: Jordan McCollum
2007-08-03

... to Dig Out Yahoos Q2 results, although disappointing, were far from surprising. Continued poor performance, management shake up...

...sometimes it seems like their tales of woe may never end.

But all may not be lost (yet). ZDNet covers a thorough report by Robert Peck, analyst for Bear Stearns (not, as I almost typed, Bear Grylls), that explores many of Yahoos options to turn their future around. And, it seems, the bottom line is that Yahoo should snap up a social network (I hear theyre delicious) (pun unintended, but Ill take it).

The polls on the page indicate that many agree with ZDNets conclusions: 75% of the nearly 200 respondents said that Yahoo should buy a social networking site. 41% of the nearly 250 respondents to their second poll chose Facebook as the network they should acquire. (I should probably mention here that the New York Times also covered this topic, but their page failed to load for me, despite repeated attempts.)

But Im not sure we should trust these peoples opinions: 20% said the best choice was Orkut. You know, Googles Orkut. I dare say that would be a supremely bad business strategy: attempt to buy something from a competitor thats for sale and signal your desperation and ultimate capitulation.

As for trusting Pecks opinion, you can judge for yourself:

Peck says the impediment to a Yahoo purchase is price. He said Yahoo has most likely considered Facebook, Bebo, Friendster and MySpace, but couldnt close a deal. Peck estimates that Facebook is worth as much as $5 billion to $6 billion depending on how you slice the numbers.

That may be what Facebook is worth (in some strange way), but what Facebook wants is more like $10 billion. Good luck there.

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About the Author:
Jordan McCollum is a staff writer for the popular marketing blog Marketing Pilgrim. She has worked in search engine optimization with clients including 3M, Little Giant Ladders and ADP. After graduating from Brigham Young University, Jordan joined the SEO copywriting team at the Internet marketing firm 10x Marketing. After 10x closed its doors in December 2006, Jordan became a freelance writer and Internet marketing consultant specializing in SEO. She also has extensive experience with web analytics, conversion rate enhancement and e-mail marketing.


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